Macquarie Group Limited has announced a quarterly distribution of AUD 1.6148 per MQGPE capital note, payable in September 2026. The payment is partly franked and based on a 3-month BBSW plus a fixed margin, reflecting a 6.41% annualised yield.
- AUD 1.6148 distribution per MQGPE capital note
- Payment date set for 18 September 2026
- Distribution partly franked at 35%
- Annualised distribution rate of 6.4064%
- No approvals required before payment
Distribution Details and Payment Schedule
Macquarie Group Limited (ASX:MQG) has set the distribution for its MQGPE capital notes at AUD 1.6148 per security for the quarter ending 17 September 2026. The payment is scheduled for 18 September 2026, with an ex-date of 2 September and a record date of 3 September. This quarterly distribution aligns with the company’s established timetable and requires no prior approvals.
Franking and Tax Implications
The distribution is partly franked at 35%, meaning AUD 0.56518 of the total payment carries franking credits reflecting a 30% corporate tax rate. The remaining 65% of the distribution is unfranked, with AUD 1.04962 attributed to conduit foreign income. This split is typical for Macquarie’s capital notes and impacts the after-tax returns for investors depending on their tax position.
Calculation of Distribution Rate
The total annualised distribution rate is calculated at 6.4064%, derived from a 3-month BBSW reference rate of 4.4674% plus a fixed margin of 2.9%. An adjustment factor accounts for franking, reducing the gross rate of 7.3674% to the effective distribution rate. The payment period covers 92 days, consistent with a standard quarter.
Context Within Macquarie’s Capital Notes Program
This distribution on MQGPE notes follows a recent AUD 1.5598 quarterly payment on the MQGPG capital notes, which carried a slightly lower annualised yield of 6.19%. The steady yields on these instruments reflect Macquarie’s ongoing management of its capital base amid a backdrop of strong profit growth and strategic investments across its divisions, including technology and sustainability initiatives.
Bottom Line?
Investors should monitor upcoming distributions for yield consistency and any changes in franking that could affect net returns.
Questions in the middle?
- Will Macquarie maintain or adjust distribution margins amid evolving interest rates?
- How might changes in corporate tax policy impact future franking levels on capital notes?
- Could Macquarie introduce new capital instruments with different distribution profiles?